Fitch rates Warsaw bond AAA(pol)

Fitch Ratings said it assigned the city of Warsaw's upcoming 600 million in Polish zloty domestic bond issue an expected national long-term rating of AAA(pol). The bonds will be issued under the city's 4 billion in Polish zloty bond program and its proceeds will be used to finance investment projects. Warsaw is rated AAA(pol) with a stable outlook.

The 10-year bond is scheduled to be issued on July 30. The fixed-interest coupon on the issue will be paid annually. The final rating is contingent upon receipt of final documents.

The ratings reflect the city's diversified and wealthy local economy, a strong tax base, high liquidity and healthy debt ratios, Fitch said.

The rating also reflects economic uncertainty and cuts in personal income tax rates, which may weaken Warsaw's operating performance in 2009 and 2010, the agency said.

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